Russian mining and
steelmaking company
Mechel has announced that a framework project agreement and an agreement on
construction of a permanent shift worker settlement for Elga Coal Complex were signed at a meeting between the management of
Mechel and South Korea-based steelmaker
POSCO on June 21.
The framework project agreement was signed by
Mechel's chairman of the board of
directors Igor Zyuzin and
POSCO's chief executive officer Chung Joon-Yang. With the agreement, the companies agreed to strengthen and expand their cooperation to include analysis and implementation of joint projects in the steel industry, mining and logistics.
As SteelOrbis reported earlier, Mechel and
POSCO signed an agreement of intent in November 10, 2010 in order to establish a mutually beneficial strategic partnership between the companies.
On the other hand, the agreement on
construction of a permanent worker settlement for Elga Coal Complex, which is located in
Russia's Sakha Republic in East Siberia, was signed by
Mechel and
POSCO's
construction division,
POSCO A&C. The agreement proposes creation of the company named
POSCO Russia to implement the project.
The permanent shift worker settlement will provide space for 3,000 residents and include a public center and five residential areas. It is due to be completed in June 2013.